In 1894, Lewis Moulton purchased Rancho Niguel from Don Juan Avila and increased the original grant to 22,000 acres (89 km2). Moulton and his partner, Jean Piedra Daguerre, used the ranch to raise sheep and cattle. The Moulton Ranch was eventually subdivided in the early 1960s, and part of the division became today's Laguna Hills.

Incorporation efforts began in 1987 and on March 5, 1991, 86% of the residents voted in favor of forming the City of Laguna Hills. On December 20, 1991, Laguna Hills officially became a City. Subsequent annexations have included the North Laguna Hills (1996) and the "Westside Annexation" (2000) areas. The latter included 149 acres (0.60 km2) of residential land, including the Aliso Viejo Community Association's Sheep Hills Park.[7]

In 2004, Laguna Hills' City Hall was moved to an existing office building at 24035 El Toro Road, which was bought and renovated by the city. The city also rents out commercial space in the building, providing the city with a positive net income.[8]

The Census reported that 29,975 people (98.8% of the population) lived in households, 233 (0.8%) lived in non-institutionalized group quarters, and 136 (0.4%) were institutionalized.

There were 10,469 households, of which 3,637 (34.7%) had children under the age of 18 living in them, 6,278 (60.0%) were opposite-sex married couples living together, 983 (9.4%) had a female householder with no husband present, 472 (4.5%) had a male householder with no wife present. There were 445 (4.3%) unmarried opposite-sex partnerships, and 101 (1.0%) same-sex married couples or partnerships. 2,041 households (19.5%) were made up of individuals and 822 (7.9%) had someone living alone who was 65 years of age or older. The average household size was 2.86. There were 7,733 families (73.9% of all households); the average family size was 3.25.

6,762 people (22.3%) were under the age of 18; 2,617 people (8.6%) aged 18 to 24; 7,638 people (25.2%) aged 25 to 44; 9,437 people (31.1%) aged 45 to 64; and 3,890 people (12.8%) who were 65 years of age or older. The median age was 40.8 years. For every 100 females there were 95.5 males. For every 100 females age 18 and over, there were 93.6 males.

There were 11,046 housing units at an average density of 1,649.9 per square mile (637.0/km²), of which 7,820 (74.7%) were owner-occupied, and 2,649 (25.3%) were occupied by renters. The homeowner vacancy rate was 1.4%; the rental vacancy rate was 11.2%. 22,307 people (73.5% of the population) lived in owner-occupied housing units and 7,668 people (25.3%) lived in rental housing units.

There were 10,895 households of which 37.5% had children under the age of 18 living with them, 61.0% were married couples living together, 8.5% had a female householder with no husband present, and 27.1% were non-families. 21.6% of all households were made up of individuals and 10.0% had someone living alone who was 65 years of age or older. The average household size was 2.82 and the average family size was 3.29.

26.2% of the population were under the age of 18, 7.3% from 18 to 24, 28.8% from 25 to 44, 25.4% from 45 to 64, and 12.1% who were 65 years of age or older. The median age was 38 years. For every 100 females there were 92.6 males. For every 100 females age 18 and over, there were 89.0 males.

According to a 2007 estimate, the median household income was $89,781 and the median family income was $102,191.[13] Males had a median income of $59,144 versus $38,761 for females. The per capita income for the city was $36,133. About 3.6% of families and 5.0% of the population were below the poverty line, including 5.3% of those under age 18 and 5.1% of those age 65 or over.

The Laguna Hills Civic Center was an existing office building at 24035 El Toro Road – near the Laguna Hills Mall – which was bought and totally renovated by the city. The city moved its City Hall there in 2004, but also rents out space in the building on a commercial basis, providing the city with a positive net income on the building.[8]

Education

Laguna Hills is served by the Saddleback Valley Unified School District. Laguna Hills students attend a variety of high performing elementary schools; Lomarena Elementary School and Valencia Elementary School. Laguna Hills middle schools are La Paz Intermediate School and Los Alisos Intermediate School in neighboring Mission Viejo. The city has its own high school, Laguna Hills High School, the smallest school in the district built in 1978 and one of the smallest in south Orange County with fewer than 1,700 students. LHHS has been named a National Blue Ribbon School and a California Distinguished School on multiple occasions.

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